Telemarketers plead guilty in ‘fabulous awards’ scam

Rachael Levy

Monday, March 31, 1997 | 11:59 a.m.

Five Las Vegas telemarketers have pleaded guilty to enticing customers into buying vitamins, air purifiers and Frisbees at inflated prices based on the fraudulent guarantee of "fabulous awards."

The employees of 21st Century Marketing admitted that the majority of customers received "gimme gifts," such as a cheap watch, instead of the promised Cadillac Coupe De Ville, big-screen color television, five-day vacation or $5,000 cashier's check.

The manager and four of his top salespeople were indicted in August on numerous wire fraud-related charges. At the time, the U.S. attorney's office alleged that 21st Century made $8 million in sales nationwide.

21st Century is a subsidiary of Pioneer Enterprises Inc., whose owners, Christopher Easly and Richard Secchiaroli, and 15 employees are awaiting trial on charges related to the same telemarketing fraud scheme, the government said.

21st Century telemarketers, who are expected to serve prison terms for the crimes, agreed to forfeit a total of $587,000 in property and other assets purchased with the illegally earned money, the U.S. attorney's office said Friday.

Director of Operations Charles Cina III will forfeit $273,000 and faces up to three years in prison. Salesman Vince Ciffa will return $111,000, John Tutino $99,000, Shirley Cina $73,000 and Mitchell Levy $31,000.

The forfeited property will be applied toward restitution of the victims of the telemarketing scheme.

The four also face 12 to 18 months in prison, the U.S. attorney's office said.

From February 1991 to July 1992, the defendants placed thousands of telephone calls, many to elderly customers across the nation.

Through false and misleading statements, the customers were led to believe they would profit if they purchased vitamins, air filters, water purifiers and pens engraved with such slogans as "Say No To Drugs." The prices of those items ranged from a few hundred dollars to about $2,000, the indictment alleged.

The profit would come in the form of an award or prize, with the "worst" award valued at $2,000, the U.S. attorney's office said. Instead, 99.98 percent of the customers received a prize valued from $8 to $30.

The 21st Century telemarketers will be sentenced Aug. 29.